Gold prices fell in early Tuesday trading, remaining within the narrow range seen over the past few sessions, with support around $3,320 and resistance at $3,350. The precious metal’s price action is being driven by optimism over a de-escalation in the ongoing trade war between China and the US, as well as a modest strengthening of the US dollar relative to other major currencies, which weighs on the price of bullion. On the other hand, the unpredictability of the US administration adds considerable uncertainty to the long-term outlook for the global economy. This dynamic is further compounded by ongoing geopolitical instability and the prospect of Fed rate cuts, both of which would offer support to gold prices. Against this backdrop, tomorrow’s release of US PCE inflation and GDP figures, along with Friday’s labour market data, will be closely watched by gold traders, as these indicators could provide greater clarity on the likely path of the Federal Reserve’s monetary policy.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
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